Consumer Duty

Definition ∞ Consumer Duty is a regulatory standard requiring financial firms to act in their customers’ best interests. This principle extends beyond merely avoiding consumer detriment, mandating proactive measures to achieve positive outcomes for retail clients. It necessitates that firms consider the entire customer journey, from product design and marketing to ongoing service and support. Adherence involves a fundamental shift in organizational culture to consistently prioritize customer welfare.
Context ∞ Within digital assets, Consumer Duty represents a significant regulatory focus, particularly concerning transparency in decentralized finance and the clarity of risk disclosures for novel crypto products. The practical application of these principles to permissionless systems and non-custodial services remains a key discussion point among global regulators. Future developments will likely involve more specific guidance on how platforms and service providers must adapt their offerings to meet these heightened consumer protection standards.